Ann: Half Yearly Profit Guidance , page-16

My 2c (having taken into account the views expressed here):

1. Market was pricing IRI for sustained growth
2. Full year growth still a possibility
3. Seems likely that growth will, however, be a little down... (unless 2nd half really shoots lights out)
4. Company still pays not insignificant dividend
5. Seems possible that dividend growth will not continue (at least not without pushing up the payout ratio considerably)
6. I personally struggle to see how IRI at $1.50 has a 'margin of safety'
7. At $1.10, assuming no dividend growth, IRI yields 4.5% + franking credits. This definitely beats a term deposit, even if you assume growth will be sluggish from now on.

In conclusion, I would predict some serious buying going on if IRI gets back down to those levels... Personally I would be prepared to sit on a decent dividend yield and take the risk that IRI grows rather than shrinks.

I'd say the long term investment thesis is still pretty sound, and the short/ medium term paper loss (or reduction in gains, for many of us) is going to be limited.

No fun for someone who bought at $1.50, but the price drop today indicates that those buyers really did expect continued growth, in my opinion.